Microware Group Ltd. (1985) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Automated Systems Holdings Ltd.

Tian Ge Interactive Holdings Ltd.

BII Railway Transportation Technology Holdings Co., Ltd.

Chanjet Information Technology Co., Ltd.

Microware Group Ltd.

Platt Nera International Ltd.

Future Data Group Ltd.

Computer & Technologies Holdings Ltd.

Hang Tai Yue Group Holdings Ltd.

Cherish Sunshine International Ltd.

MTT Group Holdings Ltd.

Why is Microware Group Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.78% and Operating profit at -15.58% over the last 5 years

Negative results in Mar 25

OPERATING CASH FLOW(Y) Lowest at HKD 64.75 MM
ROCE(HY) Lowest at 4.04%
INTEREST COVERAGE RATIO(Q) Lowest at 510.07

With ROE of 2.02%, it has a Very Expensive valuation with a 2.28 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.64%, its profits have fallen by -87.6%

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 26.67% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.64% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Microware Group Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Microware Group Ltd.

-1.64%

0.00

46.72%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.78%

EBIT Growth (5y)

-15.58%

EBIT to Interest (avg)

34.38

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.78

Sales to Capital Employed (avg)

5.33

Tax Ratio

54.96%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1,067.51%

ROE (avg)

14.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

113

Industry P/E

Price to Book Value

2.28

EV to EBIT

15.46

EV to EBITDA

9.26

EV to Capital Employed

6.88

EV to Sales

0.22

PEG Ratio

Dividend Yield

ROCE (Latest)

44.52%

ROE (Latest)

2.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -55.15% (YoY

NET SALES(Q)

Highest at HKD 770.65 MM

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 64.75 MM

ROCE(HY)

Lowest at 4.04%

INTEREST COVERAGE RATIO(Q)

Lowest at 510.07

INTEREST(Q)

Highest at HKD 3.77 MM

PRE-TAX PROFIT(Q)

Lowest at HKD 2.92 MM

NET PROFIT(Q)

Lowest at HKD -4.02 MM

EPS(Q)

Lowest at HKD -0.01

Here's what is working for Microware Group Ltd.

Net Sales

Highest at HKD 770.65 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Raw Material Cost

Fallen by -55.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at HKD 7.44 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 7.44 MM has Grown at 6.45%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Microware Group Ltd.

Interest Coverage Ratio

Lowest at 510.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At HKD -4.02 MM has Fallen at -116.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Operating Cash Flow

Lowest at HKD 64.75 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Interest

Highest at HKD 3.77 MM

in the last five periods and Increased by 32.62% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Pre-Tax Profit

Lowest at HKD 2.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -90.2%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -4.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)